Kizspy | Question: 19
(Choose 1 answer)
The table below is financial statement of Velapure Inc.
Income Statement
Sales
$8,500
COGS
$7,210
Depreciation
$400
EBIT
$890
Velapure Inc. does not want to incur any additional external financing. The dividend payout ratio is constant. What is their internal growth rate?
Interest paid
$40
Taxable Income
$850
Taxes
$310
Α. 2.92%
Net Income
$540
Β. 3.71%
Dividend
$330
C. 5.47%
Additional to retained earnings
$210
D. 5.94%
Π
Balance Sheet
Cash
$1,700
Accounts payable
$2,175
Accounts receivable
$1,020
Long-term debt
$525
Inventory
$2,480
Common stock
$3,000
Total
$5,200
Retained earnings
$1,700
Net fixed assets
$2,200
Total Assets
$7,400
Total liabilities & equity
$7,400
